My take on Austin business and starting companies and other random business things.

Thursday, July 21, 2005

Marketing for Startups & Guiding Principles

I attended:TiE EventMarketing for Startups 6 Guiding Principles

1. Marketing's role is to bring "outside-in" discipline to the organization.2. Marketing is war. It's not just a battle of products; it's a battle of perceptions.3. Marketing's job is to focus on the organization where it can win - on customer segments that will value its unique advantages.4. A marketing budget must balance people $$ with program $$. You need both.You need to spend money to make money.5. Great marketing causes organizational stress - this is a good thing.6. Superior marketing is as important as superior technology in building long-term competitive advantage.

Principle #1Marketing's role is to bring "outside-in" discipline to the organization.Who you are going to sell to?Why?and communicate to the organization.

"discipline" - level of objectivity because you will have pride and blind spotshave to budget enough travelmust get out of office to the customerwant to know your weaknesseswant to here obejctive feedback

???? company did 700-1000 cold calls to do interviews

They were looking for:- looking for urgent need- pervasive need- willing to pay money for

it is painfulyou have to spend money to do it

can't stop with idea and conceptyou have to do it with product specifications

Value of I/P and getting patents in place - very important.Intel used patents to block people.

Principle #2Marketing is war.

It's not just a battle of products; it's a battle of perceptions.

Engineers think truth is enough. Marketers think perceptions are all that matter.

How do you position relative to competition?How do you appeal to customer?

War Story - Great battle of Intel vs. Motorola:at stake was the entire market 8086 vs. 68000Intel had a much more inferior product.Positioned that they had a vision on computer architectureBuilt future out of products that didn't existHad this road mapPeople sat back and said "can I afford not to be on this road map?"

War Story - Tivoliafter tivoli had been bought by IBMchallenge was CAway they succeeded in positioning superior to camade CA look like they were mainframesucceeded in assocaited CA with old, expensive, monthly license fees.Took element of truth about their heritage and made it a big issue

Point is - don't do it all of your own.Analysts, industry pundits are critical.

War Story - PC MagazineWorking with press.Created a new category of digital imaging and educated PC Magazine on what categories were important.

Principle #3Marketing's job is to focus on the organization where it can win - on customer segments that will value its unique advantages.

Buy in of executive management.If company is not bought in, you will have sales chase where money is.Need company to stay focused

War Story - Southwest Airlinesflew between 3 cities - San Antonio, Dallas, Houstonprice trip below cost of driving1971 - 1979 only was in Texaswasn't disracted by going outside thier market

War Story - Big SplashAll CEOs of imaging in one placeAnalysts, press all showed upIf they didn't come, they'd be missing something

Principle #4A marketing budget must balance people $$ with program $$. You need both.You need to spend money to make money.

These newly enhanced Globa| Cedar trees require only 9-12 years of growth before they can be harvested for lumber, whereas worldwide growth time for lumber is 30-50 years.

Other than growing at an astonishing rate, the Global Cedar has a number of other benefits. Its natural elements make it resistant to termites, and the lack of oils and sap found in the wood make it resistant to forest fire, ensuring higher returns on investments.The wood is very lightweight and strong, lighter than Poplar and over twiceas strong as Balsa, which makes it great for construction. It also has the unique ability to regrow itself from the stump, minimizing the land andtime to replant and develop new root systems.

Based on current resources and agreements, EGTY projects revenues of $140 Million with an approximate profit margin of 40% for each 9-year cycle. With anticipated growth, EGTY is expected to challenge Deltic Timber Corp. during its initial 9-year cycle.

Deltic Timber Corp. currently trades at over $38.00 a share with about $153 Million in revenues. As the reputation and demand for the Global Cedar tree continues to grow around the world EGTY believes additional multi-million dollar agreements will be forthcoming. The Global Cedar nursery has produced about 100,000 infant plants and is developing a production growth target of 250,000 infant plants per month.

Energy and Asset Technology is currently in negotiations with land and business owners in New Zealand, Greece and Malaysia regarding the purchase of their popular and profitable fast growing infant tree plants. Inquiries from the governments of Brazil and Ecuador are also being evaluated.

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All statements made are our express opinion only and should be treated as such.We may own, take position and sell any securities mentioned at any time. Any statements that express or involve discussions with respect to predictions, goals, expectations, beliefs, plans, projections, object'ives, assumptions or future events or perfo'rmance are notstatements of historical fact and may be "forward,|ooking statements." forward,|ooking statements are based on expectations, estimates and projections at the time the statements are made that involve a number of risks and uncertainties which could cause actual results or events to differ materially from those presently anticipated. This newsletter was paid $3,000 from third party (IR Marketing). Forward,|ooking statements in this action may be identified through the use of words such as: "pr0jects", "f0resee", "expects". in compliance with Se'ction 17. {b), we disclose the holding of EGTY shares prior to the publication of this report. Be aware of an inherent conflict of interest resulting from such holdings due to our intent to profit from the liquidation of these shares. Shar,es may be sold at any time, even after positive statements have been made regarding the above company. Since we own shares, there is an inherent conflict of interest in our statements and opinions. Readers of this publication are cautioned not to place undue reliance on forward,|ooking statements, which are based on certain assumptions and expectations involving various risks and uncertainties that could cause results to differ materially from those set forth in the forward- looking statements. This is not solicitation to buy or sell st-0cks, this text is or informational purpose only and you should seek professional advice from registered financial advisor before you do anything related with buying or selling st0ck-s, penny st'0cks are very high risk and you can lose your entire inves,tment.

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